GBP/EUR climbs after the EU leaves the door open for a Brexit extension

After a sell-off of the Pound’s value yesterday that saw the GBP/EUR rate drop into the 1.14’s for the first time in almost a month, the Pound has staged a minor comeback this morning as its hit 1.1607 at its highest level this morning.

Late last night it was announced by European Council President, Donald Tusk that all 27 European Union leaders have agreed to the extension to Article 50 requested by UK Prime Minister May. The length of the extension though will depend on whether or not May’s Brexit deal will be voted in favour of by MP’s so despite the chances of a no-deal Brexit decreasing, there is still plenty of uncertainty and this is likely to impact the Pound’s value moving forward.

As it stands the extension will run from March the 29th until May the 22nd proving MP’s vote in favour of May’s deal. If her deal is rejected for a third time, the extension to Article 50 will only run until the 12th of April which will leave MP’s with the choice of a no-deal Brexit or a much longer extension. The later could perhaps be favoured by the markets, as although they generally dislike Brexit and uncertainty I think that the longer option would perhaps include another referendum on the matter.

Up until now the EU leaders have made it clear that they are in favour of another referendum and also avoiding a no-deal departure, and I think that if if another referendum is announced we will see the Pound jump in value.

Next week could be busy for the GBP/EUR exchange rate, and market volatility has increased in the lead up to the 29th of this month owing to uncertainty of the situation. If you wish to be notified if there are major market movements do feel free to register your interest.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.